Other parts of this series:
A multi-speed IT strategy helps insurers speed up development by enabling them to use APIs to decouple the IT resources they use to engage with customers from those that process transactions.
A multi-speed IT strategy enables insurers to harness the potential of their digital and legacy systems to better support their business objectives.
It resolves the growing tension between the need to roll out innovative digital solutions and the demands of maintaining extensive legacy systems. Around 81 percent of executives we surveyed believe their IT organizations have reached the point where they must decide to either accelerate their digital agendas or pass this responsibility to other parts of the business.
Multi-speed IT doesn’t require organizations to split their digital and legacy resources. Instead, it focuses on decoupling the IT resources an organization uses to engage with its customers from those that process transactions. Insurers, for example, should uncouple their marketing and distribution channels from the back-office systems that hold their customer records and policy details. Established channels, as well as new digital channels, would then be able to access information quickly and easily from anywhere in the organization and from any platform. This would provide employees and agents with a single, up-to-date and consolidated view of each customer and their interactions with the insurance provider. Such capabilities are essential for insurers striving to meet the rising service expectations of their customers.
Furthermore, multi-speed IT enables insurers to capitalize on the strengths of their legacy systems, such as information integrity and security, while also taking advantage of the flexibility and agility that new digital technology provides. They can quickly launch a variety of innovative products and services that match their customers’ needs and preferences, without the risk of compromising sensitive personal information stored on their back-office systems. Digital delivery channels can easily be refined and updated after they’ve been launched without changing legacy systems and processes.
The shift to multi-speed IT is not simple but the rewards are substantial. Insurers must look closely at the pace of their IT operations and identify the different speeds required to make changes to systems, applications and services. Appropriate delivery methodologies can then be introduced that will govern these changes within a multi-speed environment.
Carriers will also need to simplify their technology architectures if they are to successfully uncouple their customer engagement systems from the systems that hold their records. This will enable them to implement changes to the business, and supporting IT systems, quickly and efficiently. It will also reduce the running costs of the legacy systems. The roll-out of new digital channels and ecosystems can be accelerated by introducing application programming interfaces (APIs) to the organization’s core data sources. Dynamic support systems will enable insurers to effectively manage their more flexible IT resources by automating large amounts of their change procedures.
In my next blog post, I’ll discuss how insurers should best implement multi-speed IT.
Until then have a look at this link. I’m sure you’ll find it useful.